Deere Gets an Upgrade as Baird Bets Big on a Farm Recovery -- Barrons.com

By Al Root

It's time to double down on the farm, says Midwestern broker Baird. A recovery is coming in 2027 that will benefit farmers, as well as shares of Deere, AGCO, CNH Industrial, and CNH dealer Titan Machinery.

Monday, Baird analyst Mig Dobre upgraded all four stocks to Buy from Hold. His Deere price target went to $800 from $640. His AGCO target went to $150 from $120. His CNH target went to $15 from $11. And his Titan target went to $29 from $20.

Deere's new price target is only the second above $800, according to FactSet.

Deere stock was up 0.9% at $635.93 in premarket trading, while S&P 500 futures were down 0.2%. AGCO stock was up 1.4% at $115. CNH shares gained 1.6% to $11.87, and Titan stock was up 4.1% at $18.59.

"Improving farm fundamentals support a 2027 North America Large Ag [equipment] recovery," says Dobre. "Mid-2027 corn futures are now above farmer breakevens, with soy improving as well; deteriorating crop condition and mid-year 2026/2027 stocks-to-use ratios both indicate sustainable price momentum and rising per-acre 2027 farmer margins, which closely correlate with future equipment demand."

Farmers have had it tough lately with higher inflation and falling prices squeezing margins. Benchmark corn prices were north of $8 per bushel in 2022. They started 2026 below $4.50.

Higher crop prices mean more revenue for farmers, which turns into sales for Deere. In calendar year 2022, Deere generated sales of almost $50 billion. Sales in 2026 are expected to be less than $42 billion. Wall Street sees a recovery, however, with revenue rebounding to $45 billion in 2027.

Dobre believes crop fundamentals support the recovery, and he sees opportunity in the stocks now.

Overall, 58% of analysts covering Deere stock rate shares Buy. That's an average Buy-rating ratio, according to FactSet. The Buy-rating ratios for AGCO and CNH are 42% and 59%, respectively. Only four analysts cover Titan stock. Now, three, or 75%, rate shares Buy.

Write to Al Root at allen.root@barrons.com.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

August 31, 2026 08:09 ET (12:09 GMT)